September 2026 housing starts down 2.7% year on year, with owner-occupied, rental and built-for-sale all fallingHomes started in September were 2.7% fewer than a year earlier
On October 30 MLIT released the Statistical Survey Report on Construction Starts for September 2026 (Reiwa 8). New housing starts in September fell 2.7% year on year overall, because owner-occupied housing, rental housing and built-for-sale housing all declined. On a seasonally adjusted annual rate basis, starts were down 5.2% from the previous month. Among private non-residential buildings, factories increased while offices, shops and warehouses fell, leaving the total lower. The report is a base document for the outlook on housing and construction orders.
- ○Applies: Factories - increased
- ×Does not apply: Offices - decreased
- ×Does not apply: Shops - decreased
- ×Does not apply: Warehouses - decreased
Key points
- New housing starts fell 2.7% year on year overall; the report attributes this to declines in owner-occupied, rental and built-for-sale housing alike
- On a seasonally adjusted annual rate basis, starts were down 5.2% from the previous month (a comparison with the previous month, not with a year earlier)
- Among private non-residential buildings, factories rose year on year while offices, shops and warehouses fell, leaving the total lower
- Detailed tabulations are posted on the Portal Site of Official Statistics of Japan (e-Stat). The responsible office is the Construction Economy Statistics Office, Information Policy Division, Policy Bureau
What to do in practice
- Reset forecasts for sales tied to housing starts (materials, equipment, interiors, brokerage) separately for owner-occupied, rental and built-for-sale housing
- Given that factories are rising while offices, shops and warehouses are falling among private non-residential buildings, shift sales effort toward the uses where enquiries are stronger
Every month the government counts how many new homes and buildings have been started across the country. In September 2026 the number of homes started was 2.7% lower than in the same month last year, because homes built to live in, homes built to rent out and homes built to sell all went down. Among company buildings, factories went up, but offices, shops and warehouses went down.
Points
- The number of new homes started was 2.7% lower than in September last year
- Measured on a yearly pace, it was 5.2% lower than the previous month
- Among company buildings factories rose, but offices, shops and warehouses fell
What the words mean
- construction start
- Beginning the work of putting up a building. The count is of buildings started, not of buildings finished
- rental housing
- Housing built in order to rent it out and receive rent, such as apartments
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT): MLIT, Statistical Survey Report on Construction Starts (September 2026 / Reiwa 8)
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